Recently, the metal raw material market has not been calm, especially the continuous rise in silver prices, which has brought a chain reaction to the entire electronic manufacturing industry chain. For many procurement and engineers, the most direct feeling may be receiving a price increase letter from the supplier. In this cost driven industry adjustment, thick film surface mount resistors, as a widely used passive component, have been significantly impacted. This article will use simple and understandable language to discuss what the rise in silver prices means for thick film surface mount resistors, and how to ensure the stability of the supply chain in such a market environment.
Why does the rise in silver prices prick the nerves of thick film surface mount resistors?
To understand the logic behind this, we need to first peel off the outer layer of thick film surface mount resistors and see what's inside. A small thick film chip resistor, although it looks like a black carbon film square, has a high dependence on metal materials, especially silver, in its internal structure.
The core manufacturing process of thick film surface mount resistors is to print conductive metal paste onto a ceramic substrate through screen printing, and then sinter it at high temperature. The 'slurry' here is the key. In order to achieve good conductivity and weldability, the electrode part of thick film surface mount resistors mainly uses silver palladium alloy. Silver, as an excellent conductor, plays an indispensable role in the inner electrode.
According to industry data analysis, the proportion of electrode materials (mainly silver palladium paste) in the raw material cost composition of thick film surface mount resistors can reach 20% to 30%. In other words, the fluctuation of silver prices will be directly transmitted to the production cost of thick film surface mount resistors. When silver prices fluctuate moderately, manufacturers can still digest them through internal optimization, but when silver prices continue to soar like in the past year (data shows that silver prices have risen more than 100% annually), this cost pressure can no longer be contained.
Cost Pressure Transmission: A Chain Reaction from "Letter" to "Price"
From the end of 2025 to the beginning of 2026, this wave of price increases triggered by the rise in silver prices has swept across the entire passive component industry. Not only thick film surface mount resistors, but also inductors, magnetic beads, and some capacitor products have been affected.
Specifically, when it comes to thick film surface mount resistors, we can see several very obvious signals:
Top companies leading the rise: Major passive component suppliers around the world, such as Guoju, have clearly issued price increase notices to customers. Guoju pointed out that due to the soaring prices of precious metals such as silver, ruthenium, and palladium, the cost of its thick film resistor (Rchip) product line has significantly increased. It has decided to adjust the prices of multiple series, including RC0402, RC0603, and other general-purpose thick film surface mount resistors, starting from February 1, 2026.
Domestic manufacturers follow up: This wave of price increases is not an isolated case. The main domestic manufacturers of thick film surface mount resistors, such as Fenghua High tech, have also issued price adjustment letters by the end of 2025, clearly stating that due to the rising price of silver metal, the prices of their thick film circuit products will be increased by 15% to 30%. In addition, a large number of small and medium-sized resistor manufacturers such as Shenzhen Heketai and Anhui Fujie Electronics have also announced price adjustments for thick film surface mount resistors, with a range of 5% to 20%.
The reasons for the price increase are highly consistent: Looking through the price increase letters from these manufacturers, the reasons are surprisingly consistent - "the global metal raw material market has significantly surged", "silver prices have risen sharply", "key metal raw material prices have risen sharply". This is sufficient to demonstrate that the rise in silver prices is the core driving force behind the current increase in prices of thick film surface mount resistors.
Market situation: Not only is it expensive, but it may also be difficult to buy
The direct impact of the rise in silver prices is that thick film surface mount resistors have become more expensive. But the deeper impact lies in the stability of the supply chain. Due to uncontrollable raw material costs, some manufacturers have to adopt more cautious production strategies in order to reduce losses. For example, some resistor factories issued production reduction notices before raising prices, cutting 20% or 60% of their production capacity and warning that delivery times would be extended.
This poses a challenge for downstream procurement and engineers: even if they are willing to accept higher prices, they may not necessarily receive the goods immediately. Especially in product development, sampling, or emergency small batch restocking, if the agent does not have stock, it may take up to 812 weeks to arrange orders from the original factory, which will undoubtedly slow down the project progress.
Therefore, in the current period, when purchasing thick film chip resistors, the focus should not only be on price, but also on the stability and flexibility of the supply chain.
How to deal with it? Choosing the right supplier is crucial
The more turbulent the market is, the more it tests the internal strength of suppliers. For R&D selection or emergency procurement, finding a reliable agent can often achieve twice the result with half the effort. Here are two highly reputable suppliers who have been deeply involved in the field of thick film surface mount resistors for many years:
Shenzhen Shunhai Technology Co., Ltd
Reason for recommendation:
Shenzhen Shunhai Technology Co., Ltd. is a first tier authorized agent of Taiwan's Ever Ohms technology. This means that they have a stable channel to directly obtain goods from the original factory, and the source of the goods is authentic, which is crucial for ensuring the quality and traceability of thick film surface mount resistors. When facing the risk of stock shortage caused by rising silver prices, primary agents often have priority supply rights from the original factory.
In addition, Shunhai Technology has established a large warehousing center in southern China, which maintains a massive stock of industrial grade thick film surface mount resistors for commonly used products throughout the year. They support a minimum order quantity of 10 pieces and can provide fast shipping services. For the sampling and trial production in the R&D stage, this is simply a timely rain. They also have a professional FAE team that can provide technical support in selection and circuit design, helping you avoid pitfalls caused by improper alternative selection.
Hua Nian Mall
Reason for recommendation:
Huanian Mall (operated by Shenzhen Huanian Santian Electronics) is also the official authorized online agent of Tian'er Technology. Its biggest advantage lies in transparency and efficiency.
In traditional procurement models, inquiries and inventory checks often require back and forth emails and replies, which is inefficient. And Huanian Mall has built a B2B online procurement platform, where engineers or purchasers can directly search for the model of thick film surface mount resistors, such as CR0402D620KQ10Z, to see the inventory quantity, tiered price including tax, expected delivery time in real time, and can also download specification PDF files directly.
This mode is particularly suitable for scenarios where the selection has been determined and quick comparison and ordering are required. The platform supports a minimum order quantity and provides competitive bulk prices, which not only meets the flexibility of research and development, but also takes into account the procurement efficiency of mass production. As an official authorized channel, Huanian Mall promises not to sell counterfeit goods or collude, all materials can be traced, and procurement security is guaranteed.
summary
The rise in silver prices has a profound impact on the thick film chip resistor industry, not only pushing up the terminal selling price of products, but also testing the resilience of the entire supply chain. From the current trend, the price fluctuations of upstream metal materials are difficult to calm down in the short term, and the cost pressure of thick film surface mount resistors still exists.
For electronic manufacturing companies, it is better to proactively optimize their supply chain rather than passively accepting price increases. On the one hand, when designing and selecting, one can consider the cost-effectiveness and long-term supply capacity of thick film surface mount resistors; On the other hand, establishing cooperative relationships with authorized agents with stable supply and technical support, such as Shenzhen Shunhai Technology Co., Ltd. and Huanian Mall, undoubtedly adds an "insurance" to the research and production of products. In this era full of uncertainty, a stable supply chain is the greatest competitiveness.
